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AMCOL International Corporation Message Board

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  • nematode_speculator nematode_speculator Apr 11, 2000 9:37 PM Flag

    Where's my freakin' $14 check?

    If the number of shares has been reduced by 10% or so, does that mean that the payout from the Chemdal sale will be 10% higher than the $14.00 to $14.50 previously stated?

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    • eom

    • I view the lower shares outstanding to be mostly
      beneficial for future earnings reports.
      I do not see how
      the lower shares outstanding results in much more
      money available for distribution to continuing
      shareholders. I assume the $14+ that would have gone to the
      outstanding share will remit $13+ to the company's till to
      pay for the share purchased. This leaves a fraction
      of a dollar available to benefit continuing owners.
      I doubt this will add anything significant to the
      liquidation dividend. If the money is borrowed, the interest
      could eat this up.
      To the extent that selling
      shareholders are willing to take significantly less than the
      expected dividend, and you have confidence that the
      transaction will close as anticipated, it is an innovative
      way to lower the outstanding shares to the continuing
      shareholder's benefit. Amcol's management has described their
      share buy-back program as "opportunistic". This fits
      within that designation.